India’s renewable energy journey has entered a defining phase, marked by record capacity additions, rapid progress in storage and hybrid projects and strong policy support. However, there are still challenges around transmission, power purchase agreements (PPAs), discom finances and supply chain dependencies. This forum brings together leading renewable energy developers to reflect on the key hits and misses of the past year, assess India’s energy transition so far and explore emerging opportunities that are shaping the clean energy sector…
What were the key hits and misses in the renewables sector over the past year?
Sanjay Gupta
Last year, India made significant strides in renewables, with very strong capacity growth. The pace has been phenomenal, with the country adding substantial capacity, in both the commercial and industrial (C&I) and utility sectors.
Another standout has been the reduction in the levellised cost of energy for solar-plus-battery storage. Storage is critical to displacing coal, and this development allows companies such as Cleantech Solar to offer a higher plant load factor (PLF) on a cost-efficient basis, making renewables competitive with fossil fuel-based generation.
On the “misses” side, there has been a slowdown in tenders and auction volumes in recent quarters, with relatively low auction clearance rates. Land acquisition and connectivity also remain challenges, creating execution risks and delays in achieving commercial operation dates.
Akshay Hiranandani
India’s renewable energy sector made significant headway over the past year, achieving notable capacity milestones while also confronting persistent structural and financial challenges.
Notably, India’s renewable capacity reached 232 GW, marking a nearly threefold growth over the past decade. Solar energy now contributes nearly 25 per cent to the installed power capacity, overtaking thermal in some regions. This growth was supported by an increase in utility-scale solar and wind installations, greater traction in hybrid and round-the-clock (RTC) energy projects and a steady push towards energy storage integration.
Private sector enthusiasm remained high, with growing participation in tenders, project commissioning and cross-border partnerships. Additionally, India’s focus on clean energy transition drew further attention on global platforms, reinforcing investor confidence and international collaboration.
However, challenges remain. Grid integration and evacuation bottlenecks have emerged as key limiting factors, particularly in high-capacity states. Financing hurdles, including delayed discom payments and limited access to affordable capital, continue to strain developer margins and timelines. Despite supportive policies, uptake in offshore wind and pumped storage plants (PSPs) remains slow due to procedural complexities and cost uncertainties.
Moreover, distributed renewables such as rooftop solar and bioenergy saw subdued progress, constrained by operational issues and a lack of incentive alignment with discoms. As the sector works towards the 2030 target of 500 GW of non-fossil fuel capacity, a sharper focus on enabling infrastructure, policy simplification and financial de-risking will be critical to sustain momentum and address the current bottlenecks.
Srivatsan Iyer
The past year has been a watershed year for India’s renewable energy sector – one where intent translated into real momentum. India crossed the 200 GW mark in installed capacity, saw a significant uptick in utility-scale and C&I projects, and witnessed improving tariff dynamics. But more importantly, the narrative itself evolved – renewables are no longer viewed in isolation. Through storage, hybrids and RTC supply models, renewables are considered a key contributor to an integrated energy ecosystem. This is a big shift.
Now that we have moved past the question of whether we can scale renewables, the next phase is to accelerate, optimise, integrate, innovate and future-proof not just the electrical energy network but also the entire energy value chain. And that is exactly the kind of problem we should be solving at this stage.
The next frontier for us lies in strengthening execution. As the sector scales rapidly, there is a real opportunity to streamline processes – from faster PPA closures to proactive grid planning and accelerated storage deployment. Transmission, in particular, is emerging as a strategic enabler, and addressing the issue of inadequate transmission capacity through long-term, systemic solutions will unlock the full potential of the country’s renewable ambitions.
Naveen Khandelwal
The past year has been a telling chapter in India’s renewable energy journey – one of both extraordinary gains and clear reminders of the road still ahead. In 2024-25, the sector added a record 30 GW, increasing the total installed capacity to 220 GW. This was no small feat, achieved despite geopolitical turbulence. Battery energy storage system (BESS) capacity received a significant boost through multi-pronged efforts, including stand-alone storage on the transmission and distribution side as well as generation-integrated BESSs. In fact, storage-linked and hybrid tenders accounted for about 68 per cent of the total renewable energy capacity auctioned in FY 2025. On the transmission side, the pace of project auctions had more than doubled by December 2024 from the previous year, reflecting a decisive push towards grid stability and the infrastructure needed for a truly modern energy system.
The union budget 2025 also sent a strong signal, with a significant fund allocation for the Nuclear Energy Mission and the National Green Hydrogen Mission, incentives for domestic refining of rare earth elements and viability gap funding for battery storage.
Yet, progress is never without roadblocks. As of late 2024, around 40 GW of capacity was awaiting construction due to the absence of signed PPAs. More concentrated and collective effort of the centre and state governments could have turned these projects from stranded potential into live assets. Transmission capacity expansion, while steady, still has significant room for improvement.
How do you rate India’s energy transition so far? What are the key bottlenecks and likely solutions?
Sanjay Gupta
We operate across different markets in South Asia, and we feel India is probably the most attractive market, owing to its large size, growing demand and relatively stable regulations. Compared to Southeast Asia, where project sizes are much smaller, India has significantly larger projects, even in the C&I sector, with project sizes sometimes reaching 150 MW or more.
The challenges in India, however, include grid flexibility and transmission capacity issues. Grid connectivity remains a struggle across states, and more needs to be done to expand evacuation capacity. Energy storage has started to take off, but it is still a long way from delivering reliable and affordable 24×7 renewable power.
The financial health of state discoms is another constraint. While some have improved, in many states, the situation remains precarious. Policy continuity is also critical for investment. For example, the proposed banking and settlement mechanism in Maharashtra, where solar generation needs to be consumed in the daytime slot, reduces operational flexibility. These restrictions, along with higher open access costs and regulatory uncertainty, undermine project economics and dampen investor appetite, potentially stalling growth in a state that has otherwise been a leader in renewable energy.
Akshay Hiranandani
India’s energy transition journey has been both strong and transformative – particularly over the past decade, driven by rapid renewable capacity additions, falling tariffs and increased investor confidence.
In the near term, India’s renewable energy capacity has seen a threefold rise, from 75.5 GW in 2014 to over 232 GW by mid-2025, including solar, wind, hydro and bioenergy. Solar alone now contributes nearly 24 per cent of the total installed capacity, with overall renewables (including large hydro) making up 48 per cent. This shift has been underpinned by a steep drop of about 80 per cent in solar tariffs, making renewables more competitive than new coal-based power.
India’s leadership in solar module manufacturing, hybrid renewable energy deployment and clean energy financing (over Rs 1.6 trillion since 2020) positions it as a key player in the global energy transition.
However, medium-term challenges remain. Over 50 GW of renewable projects are stranded due to transmission delays and a lack of PPAs. Storage infrastructure remains underdeveloped, with the projected demand of 336 GWh by 2030 outpacing current build-out plans. Policy misalignments, evolving localisation mandates and skilling shortages further complicate the landscape.
To unlock the next phase of growth, India must focus on fast-tracking transmission, incentivising battery storage, enabling dynamic procurement models and scaling up domestic manufacturing. Strengthening workforce readiness through green skilling initiatives will also be critical.
Srivatsan Iyer
India’s energy transition has been an impressive journey that began in earnest around two decades ago, when we first started approaching renewables as more than just a marginal energy source. Since then, we have seen one of the most remarkable energy stories anywhere in the world, in terms of both scale-up and favourable economics.
Early efforts such as the National Solar Mission laid the foundation, and the transition has matured significantly over the past five years. Today, we are not just adding capacity; we are building an energy ecosystem that is cleaner, smarter and more integrated. Policies such as the National Green Hydrogen Mission are expanding the scope of decarbonisation beyond power into hard-to-abate sectors such as steel, ammonia and transport; the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan is enabling rural solarisation at scale and linking clean energy with agricultural reform – a powerful, inclusive model; and the PM Surya Ghar: Muft Bijli Yojana is catalysing residential rooftop installations. At the large-scale utility level, storage-linked, firm and despatchable renewable energy (FDRE) and RTC tenders are shifting the market towards 24×7 reliability, which is critical as renewables scale up to meet demand growth.
What we need now is sharper execution and better coordination across central and state agencies – particularly on transmission planning and build-out, storage incentives and contract enforcement. India’s energy transition is no longer just a climate story; it is about building a modern energy economy that is clean, resilient and globally competitive.
Naveen Khandelwal
India remains a global case study in balancing development and sustainability. We achieved 50 per cent of the renewable energy capacity target ahead of the 2030 deadline. We diversified not just into solar and wind, but also into nuclear, hybrid systems and storage. At COP29, India reaffirmed its commitment to self-reliance without sabotaging climate goals. Investor sentiment kept pace with the sector’s ambition. Renewable energy investments surged by over 90 per cent in late 2024, underscoring the confidence in India’s clean energy market.
Having said this, global tariff tensions and rare earth export restrictions, especially from China, exposed vulnerabilities in the supply chain. Today, India remains fully dependent on imports for critical minerals such as lithium, cobalt and nickel. For the country to meet its energy independence goals, domestic exploration, refining and recycling of these resources can no longer be aspirational – they must be strategic priorities.
When it comes to transmission, the backbone of India’s renewable energy growth, there is a notable lack of meaningful new interconnection capacity planned in the central transmission utility network for the next three to four years. Manufacturing zones or industrial parks must be established closer to resource-rich generation hubs such as Rajasthan and Gujarat, effectively bringing the load to the source of power generation. Another solution lies in actively promoting state transmission utility-connected generation assets through well-structured contracts with renewable energy implementing agencies.
Furthermore, India must move beyond the last-mile assembly of energy equipment if it truly aims to become a global export hub. By building full-scale manufacturing capabilities, from design to production, the country can capture far greater value in the supply chain, rather than leaving the margins to overseas suppliers. This shift will not only generate high-quality jobs but also create a network of ancillary industries, driving broader economic growth. At the heart of this transformation lies sustained investment in research and development, which will determine whether India can compete on innovation as well as scale.
If 2024-25 showed us anything, it is that India’s energy transition is not just about the speed of development but also the strength and self-sufficiency to sustain it.
What are the major emerging opportunities in this space in your view?
Sanjay Gupta
Energy storage and 24×7 renewable power supply are major focus areas, as many corporations are now ready to replace a substantial portion of their fossil fuel capacity with renewables. This shift is driven by falling costs and the need for green certification, especially among export-oriented units targeting Europe. This provides opportunities for FDRE, effectively replacing fossil fuel power by leveraging lower storage costs. Our core focus area has been open access renewable energy parks, and we are also exploring anchor sourcing (one large customer with multiple smaller ones).
Green hydrogen is another opportunity. While we will not produce hydrogen ourselves, we are in discussions with hydrogen producers to supply them with green power. For manufacturers, indigenising the electrolyser supply chain is also an opportunity. We are also digitalising asset performance, and operations and maintenance.
In project finance, environmental, social and governance (ESG)-linked debt instruments have emerged, making renewable energy financing easier and more attractive. These areas – storage, 24×7 renewables supply, open access parks, green hydrogen partnerships, supply chain localisation, digitalisation and ESG-linked financing – are all opportunities that we are actively pursuing.
Akshay Hiranandani
The next wave of India’s renewable energy journey is being shaped by innovative models, with new avenues emerging across the near-, medium- and long-term horizons.
The demand for RTC renewable power is accelerating, driven by energy-intensive sectors such as data centres and manufacturing. Hybrid renewable systems, supported by energy storage solutions and policy clarity, are enabling firm and despatchable power supply.
Medium-term growth will be anchored in digitalisation, battery and PSPs, and open-access PPAs in the C&I space. Artificial intelligence (AI)-led forecasting, grid analytics and digital twins will play a vital role in enhancing system reliability and operational performance.
In the long term, green hydrogen and offshore wind represent high-impact opportunities. While still nascent, both segments are backed by enabling policy frameworks and incentives, and are likely to play a pivotal role in industrial decarbonisation and export-oriented energy markets.
Complementing this growth are advancements in carbon markets, renewable energy certificates trading and smart grid infrastructure – each offering scalable and financially viable pathways for clean energy integration.
As India evolves towards a more resilient and diversified energy ecosystem, the focus is shifting from capacity addition to value-added solutions, driven by technology, firm power delivery and integrated energy systems.
Srivatsan Iyer
India’s energy sector is entering a high-growth phase, and the time is now to deepen its impact – turning the gains already made in renewable capacity into long-term system resilience. The key drivers for this include:
- Grid modernisation is crucial as variable power meets rising demand. We are beginning to see smarter load management, AI-enabled forecasting and digital grid capabilities emerge as serious enablers.
- Storage will be critical as we move towards converting variable renewable energy into firm, despatchable and RTC power supply.
- Industrial demand is driving growth in C&I solutions such as virtual PPAs and decentralised energy generation. The focus is shifting from simply generating power to delivering integrated, innovative energy solutions that will define the future.
- Distributed, decentralised generation and microgrids are key to serving local demand centres such as villages, industrial clusters and residential neighbourhoods.
- Green hydrogen and its derivatives are opening up major industrial decarbonisation potential.
- The electrification of mobility and industrial energy requirements will lead to the replacement of conventional fossil fuels.
Naveen Khandelwal
India has struck a careful balance between energy access, affordability and security, all while meeting its growth imperatives with the lowest possible carbon footprint. We are witnessing a clean energy and economic transformation unlike any in our history. The forces driving it are clear: rapid urbanisation, industrial growth and digitalisation. Increasing data centre demand, electric vehicle adoption and electrification of industries will require RTC clean power solutions – blending solar, wind, nuclear, storage and green hydrogen.
The next wave of progress lies in hybrid and FDRE projects, supported by grid-scale storage and intelligent transmission systems. As India deepens its role as a global manufacturing hub, producing its own critical minerals and cleantech components will not only cut reliance on imports but also position it as a competitive exporter to the world.
This envisioned future cannot be built in silos. It will demand partnerships – among energy providers, heavy industry and technology leaders – to deliver integrated, decarbonised solutions at scale. The energy transition ahead will not be defined by a single technology or source, but by our ability to weave them together into a resilient, future-ready system.
